International Classification of Services

The expansion of the sphere of commodity-money relations contributed not only to the development of the turnover of products, but also of services. Over a long period, these two sectors existed as one. Services are able to meet the needs of people. This is their similarity with manufactured products. There is an international product classification and services. It is an ordered system of existing in a large number of categories. Despite the fact that services and goods have common characteristics (assortment, value, quality), the former have their own specifics. This over time led to the differentiation of these categories into relatively independent areas. Let us further consider how market classification services.

Terminology

Despite the fact that the service sector is constantly expanding, its role in the economy is strengthening, a generally accepted definition of this category has not yet been developed in science. According to some scholars, it should be understood as a special consumer value, which is the result of labor, expressed not as a thing, but as a specific activity. From a marketing point of view, a wide variety of business activities is considered a service. It is presented as objects of sale in the form of satisfactions, benefits or actions.

Also, the service can be considered as any event or benefit that one side offers the other. It is intangible and does not lead to the capture of anything. Over the past few years, the definition given by the American expert Hill has gained popularity. In his opinion, a service is considered to be a change in the state of a product or a person that occurs as a result of the activity of another economic entity by prior consent of the first. Such an interpretation allows us to consider the concept as a concrete result of useful activity. The economic benefit makes the service thus a commodity.

Main categories

The classification of goods and services involves a certain division of all categories according to specific criteria. Services include, but are not limited to:

1. Government sector. It includes loan offices, courts, labor exchanges, fire protection, police, military services, schools, post offices, regulatory authorities.
2. Nonprofit private sector. It includes hospitals and foundations, a church and charitable foundations, museums, and colleges.
3. The commercial sector. It includes:

• banks;
• Hotels
• computer service companies;
• law firms;
• management advisory companies;
• private practitioners;
• insurance agencies;
• plumbing repair companies;
• real estate agency;
• airlines.

With the development of entrepreneurship, new services are emerging. So, today there are companies that provide assistance in balancing the budget, finding housing, planning participation in meetings and conferences, processing the necessary data, providing temporary secretaries, and so on.

Division of Activities

One of the most important practical and theoretical problems that arise during the analysis of the service sector is the issue of its structuring and classification. The development of appropriate criteria is aimed at identifying and selecting the main typological features. These parameters contribute to the breakdown of categories into groups, directions. A variety of characteristics of the service sector, a shift in one direction or another of functional accents have led to the emergence of various classifications both in Russia and abroad.The service sector includes many categories. The classification of the service sector contributes to a better understanding of the phenomenon under study, allows you to determine the distinctive features of each activity, to identify the specifics of management methods.

Lovelock's Approach

The way in which the classification of services is carried out in this case, involves their separation by direction and tangibility. Thus, actions are divided into:

1. Tangible, aimed at the human body. This category includes: passenger transport, healthcare, hairdressers, catering, beauty salons, sports facilities.
2. Tangible, aimed at physical objects. This group includes protection, maintenance and repair of equipment, veterinary and domestic services, freight transport.
3. Intangible, aimed at human consciousness. This category includes radio, education, cinema, TV, information services, museums, theaters.
4. Intangible with the same assets. This group includes banking, legal, insurance, consulting services, as well as stock transactions.

Industry method

The concept of classification in the general sense implies the distribution of objects, terms and phenomena by department, rank, type, depending on common features. The identification of criteria is based on the cost, quality characteristics of the total population of objects. In accordance with the industry approach, the classification of services includes:

1. Transport.
2. Government services.
3. Information service and communication.
4. Non-productive and domestic services (shoe shine, photo shop, hairdressers and more).
5. Retail and wholesale.
6. Provision of accommodation and meals (restaurants, hotels and more).
7. Procurement, procurement, storage material and technical resources.
8. Finance, insurance, lending, real estate transactions, other services to ensure market activity.
9. Art, culture, education.
10. Scientific service and science.
11. Health care, including sports and physical education.
12. Housekeeping Service. It includes maintenance and repair of the housing stock, utilities and industrial services.

Kotler division

According to the method proposed by this figure (the founder of marketing theory), the classification of services can be carried out by:

1. Source of occurrence.
2. The presence of the client at the time of the commission of the action ordered by him.
3. The motives of the buyer.
4. The objectives of the supplier.

Consider these features in more detail.

Source of occurrence

The classification of services on this basis involves the division of actions into those that arose as a result of the operation of machines, and those that are the result of human activity. Among the latter, there are such activities that can be performed by professionals (management consulting, bookkeeping), qualified specialists (car service, plumbing) or unskilled workers (lawn care, etc.).

Among the services arising from the operation of machines, there are those that require the use of automatic machines (trade equipment, installations for washing vehicles and so on). This category also includes events that require the involvement of devices that are controlled by relatively unskilled operators (cinemas, taxis) or equipment operated by highly skilled workers (computer services, air travel).

Customer presence

Classification types of services involves a division into those in which the customer must be at the venue of the event. For example, this applies to health care activities. There are also services in which the presence of the client is optional (for example, during auto repair).If the customer must be in the process of carrying out the event at the place of its execution, then the supplier must consider his requests. A good example can be any beauty salon. Such establishments are usually beautifully decorated, pleasant music sounds inside, and masters conduct conversations with clients in a relaxed manner.

Motives

The customer may purchase services for various reasons. Some of them are necessary for him to satisfy individual needs or business needs. Suppliers usually develop different marketing programs for each category. Along with this, the seller of the service also has its own motives. For example, a supplier may carry out non-profit or commercial activities. Separation is also carried out depending on the form of the service: servicing specific individuals or community service.

Other signs

How else are services classified? GOST provides for separation according to the following criteria:

1. The amount of capital expenditure.
2. The skill level of performers.
3. The complexity of technological operations.
4. Social status of customers.

Tangible and intangible categories

This separation is used today quite widely. Classification by these characteristics involves the distribution of services to those for the implementation of which material resources are needed and those for which they are not required. For the production of the former, for example, semi-finished products, raw materials, components and so on may be needed. Intangible services, at first glance, do not require resources. However, in any useful activity, certain objects are used. For example, the purchase or sale of goods can, in fact, be considered information services. In the process, subjects receive information about each other, negotiate, and so on. The implementation of these services requires the availability of material resources. In particular, communication and data processing facilities, an office, and consumables are needed.

International Classification of Services

Statistically recorded activities in developed countries are represented by the following categories:

1. Business.
2. Communication
3. Construction and engineering.
4. Distribution
5. General educational activities.
6. Travel and tourism.
7. Financial services and insurance.
8. Enviroment protection.
9. Social security and healthcare.
10. The organization of leisure.
11. Transport.
12. Other activity.

Functional focus

There are not many categories of services that form an exclusively defined sector according to one or another orientation. In this regard, it is advisable to distinguish categories of activities aimed at:

1. Production.
2. Society.
3. Household.
4. Meeting individual needs.

The first, in particular, include services for commissioning, maintenance, repair and configuration of equipment and systems. Also in this category is the activity of warehousing and storage of material resources, supply, functioning of production infrastructure (access roads, bridges, roads).

Services that are oriented to society include the work of the state apparatus to ensure the country's defense and internal security, maintain law and order, and regulate social processes and the economy. Activities related to maintaining housing in good condition, utilities, repair of household appliances, video and television equipment, automobiles, inventory services and equipment for recreation and leisure are aimed at the household. Individual services include a photo studio, recreation services, non-production services.

Actual areas

The classification of trade services is considered relatively separately. Sale can be done at retail or in bulk. Activities are divided into the following categories:

• Implementation.
• Packaging of purchased products.
• Receiving and placing orders.
• Transportation and loading / unloading.
• Transfer of funds for purchased products.
• Advice on the operation of technically sophisticated devices and more.

The classification of catering services also deserves attention. This activity is quite widespread. It is due to the importance that the food sector has, as well as its relative availability. The classification of food services includes the following activities:

1. Confectionery and cooking.
2. Organization of service and consumption.
3. Catering services.
4. The organization of leisure.
5. Sales of products.
6. Information and advisory activities.
7. Other services.